Gregoire: Benefit hikes for state workers 'budget busters'

[The Northerner]

Increasing costs to pay for state employees' retirement and health insurance are "budget busters," Gov. Chris Gregoire said on Tuesday as she urged the Legislature to "be bold" in dealing with Washington's severe financial crisis.

During her annual state of the state address before the House and Senate, the governor outlined her plans to address a $4.6 billion deficit: Reining in government workers' benefit costs, streamlining the education bureaucracy, transferring control of the ferry system to local authorities, having people pay more for state services they use and cutting unemployment insurance rates to kick start the economy.

"Amid the worst economic climate in eight decades, our challenge is to actually transform Washington state government," Gregoire said. "Voters sent us here to lead, to solve problems, to work together, to get things done and to be bold."

Lawmakers, who convened the 105-day regular legislative session on Monday, have already slammed some of Gregoire's previously-announced ideas - like letting local areas levy more taxes to pay for the financially-struggling Washington State Ferries. But in her speech, which was heavy with comparisons between the 1930s Great Depression and our current Great Recession, the governor implored the Legislature to make difficult choices to ensure that the state's children will have opportunities in the future.

Gregoire highlighted pensions and health care costs.

"In the past decade our health care cots doubled to more than $5 billion. In the next biennium alone our pensions costs will double," she said.

Gregoire wants the Legislature to repeal a 1995 law that gives automatic benefit increases to retirees in two state pension plans, calling the law "well-intended but it carries a staggering price tag we simply cannot afford." The governor said pension reform would save $2 billion over the next four years. The governor also wants to keep health care inflation rates at 4 percent over the next 10 years.

Read more: http://www.seattlepi.com/local/433232_Gregoire11.html?source=mypi

[LisaM]

1. This is all really bad news

Washington State is a weird mix of very intelligent, liberal people, and anti-tax whack jobs.

I think we should just get our tax dollars back from Eastern Washington. They get back way more in services than they pay in. OK, I'm kidding, but that's the reality. It's the people outside of Seattle that consistently vote down revenue sources - yet get back way for their tax dollar than we do in Seattle.

[foxfeet]

2. +1 n/t

[KT2000]

3. I live in NW WA

Clallam Country to be exact. People complain that they do not get their money's worth from the state but the local governments are always pulling in grants from the state and feds. The area is full of no-tax people who do not count the grants received as benefits - it is just ignored. Lots of retired people live here.

[LisaM]

4. The state needs to educate people on that

Seriously, they should publish a map once a year showing how much each county gets back for its tax dollar. It would open some eyes.